The proposed merger between Teck Resources and Anglo American has encountered opposition from the Osoyoos Indian Band in Canada, according to a Bloomberg report.
The Osoyoos Indian Band is demanding consultations on the expansion of a smelter in southern British Columbia (BC).
The indigenous group has expressed its intention to employ political and legal measures against the merger if the companies fail to engage in consultations regarding the expansion plans for a zinc and lead smelter in Trail, BC.
Chief Clarence Louie of the Osoyoos Indian Band has stated that the land on which the smelter is located falls under its jurisdiction and that the companies have not adequately communicated with the group about the merger and investment plans.
Chief Louie has criticised the companies' proposal to expand operations without consulting the First Nations as “unconscionable”, highlighting the group's historical grievances over pollution from the Trail operations.
“To date we have experienced significant impacts without any benefit,” he said.
Teck and Anglo announced an agreement for a merger of equals, valued at more than $50bn (£37.11bn), earlier this month.
The merger includes a commitment to invest up to C$750m ($544m) in the Trail facilities to explore copper processing expansion and increase output of germanium and other strategic metals.
The Canadian Government has the authority to veto the proposed merger under the Investment Canada Act, which includes a “net benefit test”.
This allows officials to evaluate deals based on various factors including job impact, exports, technological advancement and Canada's global market competitiveness.
Teck and Anglo have pledged to invest in Canada and relocate their joint headquarters to Vancouver, with an additional C$4.5bn investment in the country contingent on deal approval.
However, Canadian Industry Minister Melanie Joly has indicated that the companies have not yet sufficiently demonstrated the deal's benefits to the national economy.
Chief Louie plans to urge politicians to block the deal unless there is improved consultation, citing the United Nations Declaration on the Rights of Indigenous People, which mandates free, prior and informed consent from indigenous groups for projects affecting their lands.
The declaration is legally recognised by both BC and Canada. The chief is seeking dialogue on environmental and cultural issues, job opportunities and revenue sharing related to the Trail operations, which have been in existence for more than a century.
“They are doing these deals on other mines, but they have nothing with the smelter, nothing in Trail itself,” added Louie.
While Teck has reported investing in Trail's remediation and working with local indigenous communities, the Osoyoos Indian Band is not listed among the groups it has engaged with.
Chief Louie is arranging to meet with Teck CEO Jonathan Price in the coming weeks, following a previously cancelled meeting. Teck has acknowledged communication with the Osoyoos Indian Band about the proposed merger and anticipates further discussions.
A Teck spokesperson was quoted by the media outlet as saying: “Teck is committed to building and maintaining relationships with indigenous governments affected by our operations and engaging meaningfully for significant projects.
“That includes Trail operations as the merger transaction progresses and the potential investments proposed as part of the merger become better defined.”
The merger is expected to be finalised within 12 to 18 months.
